Although the project approval is still lacking for the tunnel construction in Germany, the project is well on its way on both sides of the Fehmarnbelt.

Schleswig-Holstein's Minister for Transport, Bernd Buchholz
means business: The approval authority, that was formerly part of
the Planning Authority Landesbetrieb Strassenbau und Verkehr
Schleswig-Holstein / LBV-SH has been removed and is now named APV -
Amt für Planfeststellung und Verkehr and is linked directly to the
Ministry itself. The APV will promote the minister's declared goal:
German authority approval for the Fehmarnbelt tunnel construction
in the summer of 2018.

The tunnel opponents have already announced, however, that they
will challenge the approval of the Federal Administrative Court in
Leipzig. By experience, the estimate is that such a lawsuit may
take up to two years.

Construction clients Femern A/S have already signed contracts
with the construction consortia in 2016. Both Femern A/S and the
contractors are following the German approval process closely.
Meanwhile, they are preparing the technical part of the
construction process.

Activities on
the hinterland connections

The planning and construction of the hinterland connections is
in full motion. In Germany, route B207 between the end of the A1
motorway at Heiligenhafen to Puttgarden is to be expanded to a
four-track motorway. A government approval has already existed
since August 2015. However, citizen initiatives and environmental
organizations have placed a complaint with the High Administrative
Court in Schleswig. Due to an ongoing planning process, which must
be part of the trial, it is unclear whether the trial can begin in
2018 or not.

On the German part of the Fehmarn rail track between Puttgarden
and Bad Schwartau, which consists of an original but expanded part
and a new line along the A1 motorway, the planning is under way.
Currently, Deutsche Bahn Netze / DB is preparing track planning and
approval planning for the track's eight approval sections. However,
the planning is currently delayed by approximately four months. The
reason being that DB in its documentation must add the latest
municipal plans for noise reduction. These proposals go beyond the
limits laid down by the law and DB therefore expects to start the
approval process in March 2018.

The Fehmarnsund Bridge is a bottleneck and a challenge. Already
in 2010, it was apparent that the listed bridge should be
renovated. Later, it became clear that the bridge will not be able
to cope with the load of additional trains and vehicles after the
opening of the Fehmarnbelt tunnel. As of now there is ongoing
renovation work on the bridge. Once the state of the bridge and its
longevity is clear, probably later in the summer of 2018, this will
be included in an assessment of how a new Fehmarnsund connection
should be constructed. The solutions must include a possible use of
the old listed Fehmarnsund Bridge as part of the project. A final
proposal is expected to be ready by the end of 2018.

Denmark is
ahead - but ...

In Denmark, the plan is for the new rail track between
Copenhagen and Ringsted is to open in May 2019. Professional media,
however, have reported a number of problems in connection with the
establishment of a new signal system. The Danish state railways
have not yet ordered new electric trains that can fully utilize the
route.

According to Banedanmark, upgrading of the Ringsted-Fehmarnbahn
between Ringsted and Fehmarn includes upgrades at speeds of 250
km/h with new double trains and a new signal system ERTMS in 2021.
The Storstrøm Bridge, which the route will pass, will not be ready.
According to the Danish Road Directorate's plans, the bridge must
be completed by 2024 and at that time the entire rail track must
also be electrified.

The expansion of the remaining part of the route between
Nykøbing F. and Holeby/ the Fehmarnbelt Tunnel should be adapted to
the opening of the Fixed Fehmarnbelt connection. The final schedule
is not yet known.

Clouds above
the Storstrøm Bridge

The new Storstrøm Bridge is a prioritized project adding up to
2.1 billion Danish Crowns. Now difficulties have arisen: Two of the
three companies in the Italian construction consortium have been
accused of corruption by an Italian court. One of the three
companies in the consortium - Condotte - is also undergoing a
reorganization. The Danish State's lawyer has gone into the case,
but at the beginning of January, they concluded that the case does
not justify the Danish government to transfer the contract to one
of the other bidders. Nevertheless, the signing of the contract was
postponed in the first place.

However, the parliamentary majority behind the Storstrøm Bridge
has decided today (31 January) to support that the Danish Road
Directorate can now sign the contract with the designated Italian
contractor consortium, but the contractor Condotte will pull out,
so the Ministry of Transport reports.

Since the consortium did not reach the deadline today, January
31 at noon, stating that it is possible for Condotte to sign the
contract, Condotte is expected to be withdrawn from the contract
and that the Danish Road Directorate will finalize an agreement
with the other two contractors.

The contract will include clauses on self-cleaning and
abolition. The winning consortium provides a total guarantee of 480
million Danish Crowns, an amount corresponding to 23 percent of the
total contract amount. The agreement will allow construction work
to start in 2018 and ensure that a new Storstrøm Bridge can be
completed in 2022 (road) and in 2023 (track section).

Scandlines for sale?

Persistent speculation in British, German and Danish media has
reported of a quick sale of the ferry company Scandlines, which
today sails the ferry routes across the Fehmarnbelt between
Rødby-Puttgarden and Gedser-Rostock. Scandlines itself confirms
that the owner, the British investment company 3i, always has the
shipping company on the 'sales list'. The British press reports
that 3i has hired the venerable British financial advisory group
Rothschild to find a suitable buyer and to handle the entire sales
process.

STRING partners

STRING is a political cross-border partnership between Akershus County and Østfold County in Norway, Region Halland, Region Västra Götaland, Region Skåne and the City of Malmö in Sweden, the City of Copenhagen, the Capital Region of Denmark and Region Zealand in Denmark, Schleswig-Holstein and the City of Hamburg and in Germany.